Debt rush continues with Aldar’s blockbuster AED 9 bn s-linked facility

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Adia to invest in Malaysia’s Yinson Production Offshore? + Sharjah to roll out rental index

Good morning, wonderful people. We have a packed issue for you this morning, with more debt issuances from Aldar Properties, which closed what is to our knowledge the largest sustainability-linked facility in the region, and First Abu Dhabi Bank; as well as news that the US capped tech exports to the UAE, along with 119 other countries; and a takeover bid from ADQ for Aramex. Plus: We have more on the IPO pipeline for the year ahead, as well as updates on the mutual taxation agreement with Bahrain, and a healthy dose of investment news. Let’s dive in.

☁️WEATHER- More clouds and possibly showers: Expect to see cloudy skies today, with a chance of light rainfall, particularly over some northern and eastern areas, according to the National Center of Meteorology’s forecast (pdf). The mercury will reach 24°C today in Dubai before dropping to an overnight low of 16°C. Meanwhile, in Abu Dhabi, temperatures will peak at 21°C, with a low of 19°C.

WATCH THIS SPACE-

#1- Adia reportedly set to invest in Malaysia’s Yinson Production Offshore: The Abu Dhabi Investment Authority (Adia) plans to participate in a funding round where Malaysian offshore equipment manufacturer Yinson Production Offshore will offer USD 1 bn worth of convertible preference stocks to investors as early as this week, Bloomberg reports, citing people it says are familiar with the matter. British Columbia Investment Management and RRJ Capital will also participate in the funding round of the Yinson Holdings’ subsidiary.

IN CONTEXT- This comes as the floating production, storage, and offloading (FPSO) unit gears up for an upcoming IPO that could take place within a few years, the sources said. RRJ Capital is expected to contribute USD 320 mn in subscription, while the exact amount of Adia’s investment was not disclosed. The three investors are also expected to subscribe to another USD 500 mn round later down the line, the sources reportedly said.

Adia ❤️ Malaysia: A consortium comprising Abu Dhabi Investment Authority (Adia), Global Infrastructure Partners (GIP), Khazanah Nasional Berhad, Malaysia’s Employees Provident Fund (EPF), and BlackRock recently secured an 84.1% stake in Malaysia Airports. The group is advancing towards the 90% threshold required for privatization, after its stake rose to 70.08% earlier this month, up from 40.85% in December.

#2- Sharjah could roll out its rental index during the Acres real estate exhibition between 22 and 25 January, Saeed Ghanem Al Suwaidi, chairman of the Representative Committee of the Real Estate Sector Business Group at the Sharjah Chamber of Commerce and Industry told Khaleej Times. The move would help increase transparency on rentals in the emirate’s real estate market, boost investor confidence, and reduce disputes between tenants and landlords

REMEMBER- Sharjah issued a new law for real estate rentals in September, capping rent hikes, imposing stricter eviction rules, and requiring faster ratification of leasing contracts.

Sharjah isn’t the first one to do it: Dubai launched a smart rental index earlier this month, which uses AI and big data analytics to deliver real-time insights into rental trends and valuations, with plans to roll it out for commercial properties. Abu Dhabi also rolled out its index last year, and plans to update its rental index quarterly.

#3- UAE cuts anti-dumping duties on some Chinese electrical imports: The UAE reduced anti-dumping duties on Chinese-made electrical connectors, switches, plugs, and sockets to 12.2% for some companies, down from 42% in September, Al Khaleej reports. The five-year regulation, effective until 2029, left rates unchanged for Zongshan Visbo Electrical at 11.3%, Foshan Vbon Electric at 17.1%, and Zhejiang Taos Electric at 11.3%.

DATA POINTS-

#1- Sharjah International Airport received over 17.1 mn passengers in 2024, logging 11.4% y-o-y growth, according to a statement. The airport registered 107.8k flights during the year, up 9.5% y-o-y, and saw its cargo handling grow by a record 38.6% y-o-y to reach 196k tons. The airport also added seven new destinations, including Warsaw and Krakow in Poland, Athens in Greece, Vienna in Austria, Malé in the Maldives, and Tripoli in Libya.

#2- The Gulf Mercantile Exchange (GME) logged a 12% increase in 2024 trading volume with 1.3 mn contracts, the GME said in a press release. Meanwhile, front-month contracts volume grew 20% y-o-y during the year to a record 959.6k.

HAPPENING TODAY-

#1- The Abu Dhabi Sustainability Week (ADSW) kicked off on Sunday and runs through to 18 January at the Abu Dhabi National Exhibition Center. The event features 11 events gathering policymakers, industry leaders, and youth to discuss global sustainability solutions and foster collaborations.

Among the biggest events of the week: The International Renewable Energy Agency (IRENA) Assembly, which kicked off on Saturday and wraps this week in Abu Dhabi. The event gathers global leaders and decision-makers to discuss the renewable energy transition and address challenges to energy security and financing. Featured in the agenda: An International Renewable Energy Agency Youth Forum, which will see interactive sessions, open dialogues, and thematic workshops for youth to contribute to renewable energy deployment and sustainable development.

Other events include:

14-16 January (Tuesday-Thursday): World Future Energy Summit and Youth 4 Sustainability (Y4S) Forum and Hub.
15 January (Wednesday): Women in Sustainability, Environment, and Renewable Energy (WiSER) Forum.
16 January (Thursday): Green Hydrogen Summit and Zayed Sustainability Prize Forum & Investor Connect.

#3- SteelFab kicked off yesterday and runs until 16 January at the Expo Center in Sharjah. The event will feature global brands and exhibitors from 33 countries, focusing on steel fabrication technologies, including manufacturers from the UK, Germany, the US, China, and India.

#4- It’s day two of the Dubai International Project Management Forum, which is running until Thursday at Madinat Jumeirah in Dubai. The event features contributions from experts in project management from various countries, with a focus on innovative approaches to project operations, risk management, and AI applications.

#5- The Light + Intelligent Building Middle East exhibition kicks off today at the Dubai World Trade Center. The three-day lighting and building technology expo brings together industry experts and government bodies, with attendees from over 90 countries. It features the Thinklight Conference, the Smart Building Summit, the InSpotLight, and the Light Middle East Awards, among other events.

THE BIG STORY ABROAD-

Gaza ceasefire breakthrough? Israel-Hamas ceasefire talks in Doha are nearing fruition, officials involved with the talks say, with US President Joe Biden saying they are “on the brink” of a breakthrough. A draft agreement for the exchange of prisoners and the gradual withdrawal of Israeli troops from Gaza was presented to both sides yesterday, with another round of talks taking place today in Doha. Officials from both sides have confirmed that talks are progressing well. (Bloomberg | Reuters | FT | Semafor)

The goal is now to reach an agreement before US president-elect Donald Trump’s inauguration next week, officials said. Vice President-elect JD Vance said he hopes an agreement could be struck toward the final days of Biden’s administration.

Meanwhile, the US’ new AI export caps are getting plenty of attention: The US imposed export controls on chips used for AI, giving 20 close allies access to chips and restricting access to China, Iran, and Russia. We have more on what the move means for the UAE — a close partner of the US on AI — in the news well, below.

The semiconductor industry is not happy with the new export control regime, and neither is the EU. The European Commission said it is “concerned” about the new measures, while industry leaders like Nvidia criticized the move as potentially harmful to “America’s global competitiveness.” (FT | Reuters | WSJ)

Also getting attention:

Los Angeles is bracing for “hurricane-level” winds threatening to trigger more wildfires, with a red flag warning out on three areas across Los Angeles and Ventura. (NYT | Reuters | FT)
International Court of Justice President Nawaf Salam was appointed Lebanon’s prime minister after securing the majority of votes from the parliament, in another blow to Hezbollah, which was backing caretaker PM Najib Mikati to stay in the role. (FT | Reuters)

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CIRCLE YOUR CALENDAR-

Nvidia RTX AI GameCraft will take place on 23 January at Emirates Towers Boulevard in Dubai. Hosted by the Dubai Future Foundation in collaboration with Nvidia GeForce Middle East, the event will gather game developers, students, and industry professionals to create innovative games using Nvidia’s RTX AI technology. Some 15 developers will make it to the finals to compete for the top three spots.

The Global Government Cloud Forum will take place on 21 January in the Museum of the Future in Dubai. The forum will see participation from government representatives, private sector organizations, think tanks, and international organizations, including the World Bank’s Cloud Computing Working Group. It includes keynotes, panel discussions, and workshops to facilitate collaboration and knowledge exchange pertaining to cloud-enabled public administration.

The International Conference onPharmaand Medicine will take place between 21-23 January at the Sharjah Research, Technology, and Innovation Park. The event offers a platform for potential collaboration in the pharma manufacturing and healthcare sectors.

The Sharjah Real Estate Exhibition (Acres) will take place between 22-25 January at the Expo Center in Sharjah. The event features networking and business prospects in the property sector, face-to-face discussions with developers and industry experts, and exploration of the latest trends in real estate.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Aldar secures largest sustainability loan for a Mena developer, less than one week after hybrid issuance

Aldar Properties closed a AED 9 bn sustainability-linked revolving credit facility, marking the largest syndicated loan of its kind secured by a real estate company in the Middle East, according to a statement. It is also — to our knowledge — the second largest s-linked facility for a private issuer in the region, trailing Gems Education’s USD 3.25 bn sustainability-linked loan from last year.

The details: The facility has a five-year tenor and involves both conventional and Islamic tranches in AED and USD. It was arranged at a “historically tight credit spread for Aldar,” the statement said, without disclosing further details on its pricing.

Who pitched in? The syndication attracted orders from 15 international and regional financial institutions, including first-time financiers for Aldar. Participating banks included our friends at Mashreq, Abu Dhabi Commercial Bank, Ajman Bank, Bank of China, Citi, Dubai Islamic Bank, Emirates Islamic Bank, Emirates NBD Bank, First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, JP Morgan, National Bank of Kuwait, National Bank of Ras Al Khaimah, and Sharjah Islamic Bank.

This is the second landmark issuance for the developer in as many weeks: Aldar Properties issued USD 1 bn Reg S hybrid capital notes last week — marking the largest conventional hybrid issuance in the Middle East. The orderbook for the issuance was 3.8x oversubscribed, attracting USD 4.9 bn worth of bids from investors. The company is also no stranger to sustainability-linked debt, selling about USD 1 bn of green sukuk over the past two years.

The credit facility boosts Aldar’s liquidity to about AED 27 bn, fueling its growth plans across property developments and investment platforms. This new fund pushes the company’s bank balances and unrestricted money to AED 9.5 bn and undrawn revolving credit facilities to AED 17.4 bn with an average debt maturity of 5.2 years. Moody’s affirmed Aldar’s Baa2 long-term issuer rating earlier this month, according to a statement.

REMEMBER- The developer has big expansion plans: Aldar partnered with Mubadala in September 2024 to develop AED 30 bn Abu-Dhabi-based projects by establishing four joint ventures geared at developing and managing real estate assets. Meanwhile, the company is working on a mixed-use development in Dubai worth over AED 1.75 bn, under a joint venture with Expo City, as part of AED 1.8 bn plans to scale its commercial presence in key Dubai business districts. It also allocated AED 1 bn to expand its logistics operations in both emirates, as well as AED 5 bn for commercial, retail, and hospitality assets set to open between 2025 and 2027.

What’s next? The real estate developer is eyeing NCDs: Aldar in December requested board approval last month to issue up to USD 1.5 bn in non-convertible debentures. The issuance will be either perpetual or have a fixed maturity between five to 60 years.

The regional sustainable debt market has gotten a boost recently: Port operator DP World issued the Mena region’s first blue bond, worth USD 100 mn, last month. Our friends at Mashreq also signed sustainability-linked facilities (SLF) with Landmark Retail in Qatar in November, marking the country’s first bilateral SLF agreement in the private sector. Mubadala also listed USD 4.5 bn and AED 750 mn green bonds on the ADX back in January 2024.

FAB issues USD 750 mn senior unsecured notes

First Abu Dhabi Bank (FAB) issued 5-year USD 750 mn senior unsecured notes, which will be listed in Taipei and London, as part of the lender’s USD 20 bn EUR medium-term note program, Zawya reports. The Reg S Secured Overnight Financing Rate (SOFR) FRN notes, which were set with a launch spread of SOFR plus 100 bps with final pricing yet to be decided, are scheduled for settlement on 22 January.

FAB is on an issuance roll: Last week, the lender’s subsidiary FAB Sukuk priced its USD 600 mn five-year sukuk amid strong demand with a profit rate of 5.2%. The sukuk — which was 2x oversubscribed, with initial pricing of T+100 bps — will list on the London Stock Exchange, with settlement set for 16 January.

FAB is not the first UAE bank to launch senior unsecured notes in Taipei this year: Emirates NBD also tapped debt markets for a USD 700 mn issuance last week to be listed on the Taipei Exchange. The lender set the final pricing guidance at the SOFR plus 110 bps, with denominations of USD 200k and increments of USD 1k beyond that.

ADVISORS- HSBC Bank Taiwan and Standard Chartered Bank Taiwan are acting as the managers of the issuance.

ADQ wants to snap up all of Aramex

ADQ is launching an Aramex takeover bid: Abu Dhabi sovereign wealth fund ADQ intends to submit an offer to acquire the remaining shares in Dubai-based logistics company Aramex, according to a DFM disclosure (pdf). The acquisition would value Aramex at AED 4.39 bn, according to our calculations.

The details: Through its subsidiary Q Logistics Holding, ADQ has offered to buy all the Aramex shares that aren’t owned by AD Ports, which has a 22.69% stake in the freight services firm. The cash offer will be placed at AED 3 per share, a premium of around 30% to Aramex’s closing price on Friday of AED 2.31 a piece. Shares in Aramex closed up 14.7% yesterday, settling at AED 2.65.

What’s in it for ADQ? Aramex “has potential to play a central role” in helping ADQ’s broader vision for the wider UAE economy, Q Logistics said. On the other hand, a decline in its financial performance since 2019 and the absence of dividends in 2023 point to a need for a “strategic and operational transformation… to unlock the company’s full potential,” Q Holdings said. This transformation is expected to be “complex, capital intensive and to take time,” it added.

ADVISORS- Rothschild is acting as financial adviser for Q Logistics, while Emirates NBD capital is the lead manager for this project.

The US caps tech exports to hundreds of countries, including the UAE

The US has introduced export restrictions on AI chips and GPUs affecting 120 countries, including the UAE, as part of its effort to maintain AI leadership, according to a White House statement and Reuters. The regulations, effective 120 days from publication, divide the world into three tiers of export measures:

Tier 1: Includes 18 nations, like Japan, the UK, South Korea, and the Netherlands, which are exempt.
Tier 2: Covers 120 countries, including the UAE, subject to export caps. Orders with collective computation power up to 1.7k GPUs remain exempt.
Tier 3: Blocks nations such as Russia, China, Iran, and North Korea from accessing advanced AI technology.

The caps: US-headquartered cloud providers such as Microsoft can apply for Universal Verified End User (UVEU) status, allowing them to allocate up to 7% of their global AI computational capacity in non-Tier 1 countries, translating to hundreds of thousands of chips.

Can non-US companies get the goods themselves? Companies outside "countries of concern" meeting security standards can also apply for National Verified End User (NVEU) status, enabling them to acquire up to 320k GPUs over two years. Non-VEU entities can still access up to 50k GPUs per country.

Governments can double chip caps under certain conditions: Countries that sign agreements with the US — aligning efforts in export control, clean energy, and technology security — can double their chip caps to 100k advanced GPUs, per the new rules.

REMEMBER- The US and the UAE are close AI partners: State AI firm G42 secured a USD 1.5 bn investment from Microsoft in April 2024, facilitating large-scale AI component deliveries, including Nvidia chips and GPUs, which began in September. The US recently approved advanced AI chip exports to a Microsoft-run facility in the UAE as part of the partnership with G42 — after the two reached an agreement to prevent access to the facility by personnel from countries with US arms embargoes, or who are on the Bureau of Industry and Security (BIS) Entity List, including China, and to lock the facility down with US defense tech.

The mechanisms for AI exports from the US into the UAE have always been contentious. Concerns that the US might pull the plug on the partnership have been swirling for months, with reports that Pentagon officials are doubting G42’s commitment to fully divest from China, despite reports that it has already sold all its stake in China. G42 said it even removed all China-made hardware from the centers, making “long-term investments” to ensure data protection, and using hardware solely manufactured by Western nations, which swayed US officials to approve exports.

Bright outlook for 2025 IPOs in the UAE and the GCC, following a strong year -Kamco

The UAE is expected to sustain a strong presence in the GCC’s IPO market in 2025, with three announced IPOs and another three rumored, according to Kamco Invest’s recent report (pdf). The GCC as a whole is projected to see approximately 40 IPOs this year, with 30 announced IPOs, four mandated, and six rumored.

Listings in the pipeline for 2025:

ADQ is reportedly preparing a USD 1 bn IPO for Etihad Airways on the Abu Dhabi Securities Exchange (ADX) in 2025;
Alpha Data is reportedly planning a USD 200 mn listing on the ADX;
Dubizzle Group has tapped banks for a 2025 IPO on the Dubai Financial Market (DFM);
Hospitality group Five Holdings tapped advisors for a potential listing;
Amanat Holdings is planning to list its education and healthcare units;
Construction firm Alec and shisha producer Advanced Inhalation Ritual were also rumored to potentially IPO.

2024 in review: The GCC saw a notable uptick in IPO activity in 2024, recording 53 listings, up from 46 in 2023, with total proceeds reaching USD 12.9 bn, up 19.8% y-o-y. Despite challenges like high interest rates, declining oil prices, and geopolitical tensions, the region secured its second-highest IPO proceeds in five years, ranking fourth worldwide in total IPO proceeds.

The UAE led the GCC in IPO proceeds, raising USD 6.2 bn from seven listings in 2024. While this was slightly down from eight IPOs in 2023, it included major highlights like Talabat’s USD 10 bn listing on DFM, with parent company Delivery Hero raising USD 2 bn by selling a 20% stake. Another standout was Lulu Retail, which raised USD 1.7 bn, achieving a USD 5.7 bn market cap — the largest non-government IPO in the UAE in a decade.

The average listing size in the UAE was around USD 3.8 bn, significantly higher than the regional average of USD 598 mn. The UAE ranked fifth globally for IPO proceeds, while Saudi Arabia came in seventh.

IPO activity worldwide fell for the third straight year, with 1.2k IPOs raising USD 112.8 bn — a 1% dip in proceeds from 2023. While the Americas and Europe, Middle East, India, and Africa (EMEIA) regions posted growth, Asia-Pacific saw a decline as companies delayed plans amid market volatility and uncertainty.

Adia invests USD 500 mn in US power infrastructure firm + Shorooq Partners invests in two startups

The Abu Dhabi Investment Authority is investing USD 500 mn in US power infrastructure firm Alpha Generation, according to a statement. The ArcLight Capital Partners-owned firm owns 11 GW of generation capacity across six states in the US, making it one of the largest independent power asset managers in the country.

The details: The acquisition hands Adia a minority stake in the company. It is set to close in 1H 2025.

What they said: “This investment, and the partnership between ourselves and Adia, will help catalyze both the future growth of, and the value of, this strategic portfolio of assets,” Angelo Acconcia, partner at ArcLight, told Reuters in an interview.

OTHER INVESTMENT NEWS-

Abu Dhabi-based Shorooq Partners is investing USD 9 mn in two startups from the 1 Bn Pitches competition at the 1 Bn Followers Summit, The National reports. The firm is allocating USD 6 mn to Saudi-based Halo AI, a platform that enables brands and influencers to automate marketing campaigns, and USD 3 mn to Eugenius, a venture led by Korean media expert Eugena Jung, which focuses on producing Korean-style dramas inspired by Middle Eastern content. The summit itself is chipping in USD 4 mn to support the two projects.

ICYMI- In November, Shorooq and the summit pledged AED 50 mn to the competition, with Shorooq contributing AED 30 mn and the summit AED 20 mn.

SCA introduces draft regulation for security and commodity tokens

SCA rolls out new draft law for DLT transactions: The UAE Securities and Commodities Authority (SCA) rolled out a draft regulation (pdf) for security and commodity tokens based on distributed ledger technology (DLT). This regulation aims to establish a legislative framework for the issuance and trading of tokenized assets in the UAE. The consultation period for industry stakeholders will end on 14 February 2025, Al Khaleej reports.

Sound smart: DLT is a system that records transactions across multiple locations without a central authority. Each participant keeps a copy of the ledger, and transactions are verified by the network to ensure accuracy and security, with blockchain being an example.

The draft regulation sets out rules and guidance for contracts between creditors and their obligors on a DLT, including the transfer and cancellation of tokens, and gives the SCA authority to penalize violators of the regulation and to publish their names.

The UAE has been working on its virtual asset regulations: In Abu Dhabi, the Financial Services Regulatory Authority issued a consultation paper proposing updated rules to its virtual asset regulatory framework. The FSRA also issued a regulatory framework for the issuance of stablecoins in the ADGM earlier this month, while the Dubai Financial Services Authority amended its crypto token regime earlier last year, offering more flexible regulations for investing in unrecognized crypto tokens, reduce fees on investments, and implement more stringent anti-money laundering rules.

UAE-Bahrain mutual taxation agreement gets the greenlight from Shura Council

UAE + Bahrain sign mutual taxation agreement: A mutual taxation agreement between the UAE and Bahrain received unanimous approval from the Bahraini Shura Council, Gulf News Daily reports. The agreement protects individuals and companies from double taxation and promotes transparency and information exchange between tax authorities in both countries

This has been in the works for a while: The Finance Ministry previously signed agreements with Bahrain, Egypt, and Kuwait at the World Government Summit last year to eliminate dual taxation, with an eye to crack down on tax evasion. The ministry and the Kingdom of Bahrain also signed an agreement to promote and protect investments.

ICYMI- The UAE also entered into an agreement last year with Qatar.

Mashreq appoints new group head of treasury and capital markets

Our friends at Mashreq appointed Salman M. Hadi (LinkedIn) as the company’s new Group Head of Treasury and Capital Markets (TCM), according to a press release. Hadi brings extensive experience in treasury and capital markets, with a track record of senior roles at leading financial institutions, including Abu Dhabi Commercial Bank and Emirates NBD.

Equitativa Dubai appointed Sheikh Mohammed Moeen (LinkedIn) as acting CFO, replacing Michael Davis (LinkedIn), according to a Nasdaq disclosure. Moeen most recently served as head of finance at United Bank. Prior to that, he served as CFO and executive vice president at Soneri Bank Limited and KASB Bank before that. Moeen

Al Ansari + Abhi to introduce early salary access, SNPL services

NBFS-

Al Ansari + Abhi to introduce early salary access, SNPL services: Al Ansari Financial Services partnered with Hub71 and Abu Dhabi Investment Office-backed fintech platform Abhi to roll out earned wage access (EWA) and send now, pay later (SNPL) services, according to a press release (pdf). The services, targeting underbanked communities, are expected to launch in 2Q 2025, pending regulatory approvals.

The details: Al Ansari will use Abhi's platform to allow users to access earned wages before their scheduled payroll dates, as well as to instantly redeem international remittances while deferring payment.

ICYMI- Al Ansari Financial Services entered a similar partnership with Egyptian fintech firm MNT-Halan last month to launch EWA and SNPL services.

FINTECH-

Polish online broker XTB will now be able to scale up its operations in the UAE after it secured a 5th category license from the Securities and Commodities Authority, according to a press release. The license will allow XTB to expand its range of services in the region, boost its staff, and launch a new office outside of the Dubai International Financial Center. The Middle East is one of XTB’s fastest-growing regions, with operating revenues increasing 44.7% y-o-y in 3Q 2024.

INFRASTRUCTURE-

Drake & Scull join forces with El Amar Group for Egypt + KSA projects: Local MEP contractor Drake & Scull International partnered with Egyptian developer El Amar Group to collaborate on projects in Egypt and Saudi Arabia, according to a press release. The MoU will see them mull potential projects in real estate, infrastructure, EPC, water treatment, and district cooling, among others.

MANUFACTURING-

Sharjah gets the go-ahead to establish organic honey factory: Sharjah received the green light from the emirate’s Ruler Sheikh Sultan bin Mohammed Al Qasimi to set up an organic honey factory and lab in the Central Region, slated for completion in October, Wam reports. The facility is expected to produce 120 tons of honey annually in its first phase.

CRYPTO-

HashKey Mena secures preliminary approval for virtual asset services in Dubai: HashKey Mena, a subsidiary of Asian virtual asset financial services firm HashKey Group, received preliminary approval from Dubai's Virtual Assets Regulatory Authority for a Virtual Asset Service Provider license, the parent company said in a statement. Upon receiving final approval, HashKey Mena will be able to provide virtual asset exchange and brokerage services from Dubai for both retail and institutional investors.

EM borrowers issue a record USD 57.5 bn in debt ahead of Trump administration

Emerging market borrowers issued a record USD 57.5 bn in bonds since the beginning of 2025, a 28.9% y-o-y increase from USD 44.6 bn during the same period last year, Reuters reported citing Morgan Stanley data. As borrowers rush to lock in proceeds before Trump takes charge, analysts warn that the growing appetite is at risk of a market shift.

By the numbers: Top issuers included Saudi Arabia, which sold bonds worth USD 12 bn last week, while Mexico recorded USD 8.5 bn and Chile recorded USD 3 bn in sales. Average premiums range between 0 and 10 basis points above US treasuries, with EUR-denominated bonds making a strong comeback. Sovereign borrowers, including Saudi and Indonesia, are mitigating higher yields by favoring shorter maturities over traditional 30-year bonds, the newswire said.

The drivers: This surge in borrowing is driven by fears of market volatility ahead of the second Donald Trump administration, uncertainty around the US Federal Reserve’s interest rate plans, and inflation concerns, Stefan Weiler, JPMorgan's head of CEEMEA debt capital markets, told Reuters. Emerging markets are also under pressure from USD 500 bn in short-term debt issued during covid, set to mature this year.

The trend is expected to continue: Borrowers are expected to issue another USD 30 bn in debt before 20 January, Weiler added. The trend could also continue well into 1H 2025, according to Matt Doherty, head of CEEMEA syndicate at BNP Paribas. “I wouldn't be surprised if you have another first half where we see the best part of USD 200 bn in issuance from CEEMEA,” Doherty told Reuters.

MARKETS THIS MORNING-

Asian markets are mixed in early trading, largely mirroring a mixed trading session for Wall Street yesterday that ended last night with tech stocks falling. Mainland China’s CSI 300 and the Hang Seng Index are each up 1.2% and Shanghai is similarly up 1.3%, while Japan’s Nikkei is firmly in the red so far this morning.

Futures indicate Wall Street is set to open in the green, suggesting the Dow Jones will continue rising after closing up 0.9% yesterday.

ADX	9459	-0.4% (YTD: +0.4%)
DFM	5233	+0.1% (YTD: +1.4%)
Nasdaq Dubai UAE20	4265	-0.5% (YTD: +2.4%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.2% o/n	4.4% 1 yr
TASI	12,110	-0.1% (YTD: +0.6%)
EGX30	28,556	-2.5% (YTD: -4.0%)
S&P 500	5836	+0.2% (YTD: -0.8%)
FTSE 100	8224	-0.3% (YTD: +0.6%)
Euro Stoxx 50	4954	-0.5% (YTD: +1.2%)
Brent crude	USD 80.9	+1.4%
Natural gas (Nymex)	USD 3.93	-1.4%
Gold	USD 2678.6	-1.3%
BTC	USD 94,307.7	-0.1% (YTD: +0.8%)

THE CLOSING BELL-

The ADX fell 0.4% yesterday on turnover of AED 1.03 bn. The index is up 0.4% YTD.

In the green: Rapco Investment (+14.0%), Abu Dhabi National Co. for Building Materials (+9.6%) and Ooredoo (+4.7%).

In the red: Abu Dhabi National Takaful Co. (-9.7%), National Bank of Fujairah (-8.8%) and Hayah Insurance Company (-7.3%).

Over on the DFM, the index rose 0.1% on turnover of AED 648.1 mn. Meanwhile, Nasdaq Dubai fell 0.5%.

UAE discusses boosting ties with Kazakhstan, Uzbekistan, Malaysia

UAE, Kazakhstan to boost bilateral ties: President Sheikh Mohamed bin Zayed Al Nahyan met with Kazakhstan’s President Kassym-Jomart Tokayev to discuss ramping up cooperation in renewable energy, trade, economy, investment, agriculture, and space exploration, Wam reports. The leaders also exchanged views on regional and international issues of mutual concern.

UAE, Uzbekistan discuss economic ties in key sectors: UAE Economy Minister Abdulla bin Touq Al Marri met with Uzbekistan’s Investment, Industry, and Trade Minister Laziz Kudratov to discuss cooperation in sectors including renewable energy, logistics, agriculture, and fintech, Wam reports. Discussions emphasized advancing private sector collaboration and facilitating Uzbek businesses' access to global markets.

PLUS- Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum discussed boosting UAE-Malaysia relations with Malaysian Prime Minister Anwar Ibrahim, according to a Dubai Media Office statement. The meeting covered promoting private sector engagement in investment, trade, tourism, and travel, as well as ramping up cooperation in renewable energy, food security, technology, and data center sectors.

The UAE and Malaysia also inked an agreement to co-invest in AI and advanced data analytics, as part of the broader Malaysia Madani Artificial Intelligence initiative, according to an Abu Dhabi Media Office statement. The agreement focuses on developing AI-powered national security systems, high-performance computing data centers, and national security operations centers, as well as improving customs tax collection and operational efficiencies.

REMEMBER- The trade and economic partnership agreement between Malaysia and the UAE is set to be signed this week during Ibrahim’s visit to Abu Dhabi.

CALENDAR

JANUARY

13-16 January (Monday-Thursday): SteelFab, Expo Center, Sharjah.

14-15 January (Tuesday-Wednesday): ADSW Summit, Abu Dhabi National Exhibition Center (ADNEC).

14-16 January (Tuesday-Thursday): Security Leader’s Summit 2025, Dubai World Trade Center

14-16 January (Tuesday-Thursday): World Future Energy Summit, Abu Dhabi National Exhibition Centre (ADNEC).

14-16 January (Tuesday-Thursday): Youth 4 Sustainability (Y4S) Forum and Hub, Abu Dhabi.

15 January (Wednesday): Women in Sustainability, Environment and Renewable Energy (WiSER) Forum, Abu Dhabi.

15-16 January (Wednesday-Thursday): iFX Expo, Dubai World Trade Center.

16 January (Thursday): Green Hydrogen Summit, Abu Dhabi.

16 January (Thursday): Zayed Sustainability Prize Forum & Investor Connect, Abu Dhabi.

13-16 January (Monday-Thursday): The Dubai International Project Management Forum, Madinat Jumeirah.

14-16 January (Tuesday-Thursday): World Energy Summit, Abu Dhabi.

14-16 January (Tuesday-Thursday): The EcoWaste Exhibition and Forum, Abu Dhabi National Exhibition Center, Abu Dhabi.

14-16 January (Tuesday- Thursday): The Light + Intelligent Building Middle East exhibition, Dubai.

14-16 January (Tuesday- Thursday): Intersec, Dubai World Trade Center, Dubai.

19-24 January (Sunday-Friday): Coling2025, Abu Dhabi.

20-22 January (Monday-Wednesday): FESPA Middle East, Dubai World Trade Centre, Dubai.

20-22 January (Monday-Wednesday): The Fiber Connect Council Conference and Exhibition, Dubai World Trade Center, Dubai.

21 January (Tuesday): The Global Government Cloud Forum, the Museum of the Future, Dubai.

21-23 January (Tuesday-Thursday): The International Conference on Pharmacy and Medicine, The Sharjah Research, Technology, and Innovation Park, Sharjah.

23 January (Thursday): The Nvidia RTX GameCraft, Emirates Towers Boulevard, Dubai.

22-25 January (Wednesday-Saturday): The Sharjah Real Estate Exhibition (Acres), Expo Centre, Sharjah.

27-30 January (Monday-Thursday): Arab Health Exhibition, Dubai World Trade Centre, Dubai.

28-29 January (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

FEBRUARY

1-6 February (Saturday-Thursday): Dubai Fashion Week, Dubai Design District.

1-8 February (Saturday-Saturday): The Mubadala Abu Dhabi Open, Zayed Sports City's International Tennis Centre.

2-3 February (Sunday-Monday): L’Etape Dubai cycling race, Dubai.

3-6 February (Monday-Thursday): Medlab Middle East, Dubai World Trade Center.

7 February-29 April (Friday-Tuesday): The Abu Dhabi Festival, Abu Dhabi.

10-11 February (Monday-Tuesday) MRO Middle East and Aircraft Interiors Middle East, Dubai World Trade Center.

10-12 February (Monday-Wednesday): Japan Kyoto Trade Exhibition, Dubai Word Trade Center.

14 February (Friday): The deadline for the consultation period for the Securities and Commodities Authority's draft regulation on security tokens and commodity tokens.

16 February-1 March (Sunday-Saturday): Dubai Dutyfree Tennis Championships, Dubai Dutyfree Tennis Stadium in Al Garhoud.

16 February (Sunday): The International Defence Conference,The Emirates Palace, Abu Dhabi.

17-21 February (Monday-Friday): International Defence Exhibition (IDEX) in Abu Dhabi National Exhibition Center.

17-21 February (Monday-Friday): Naval Defence Exhibition (NAVDEX) in Abu Dhabi National Exhibition Center.

17-22 February (Monday-Saturday): Gulfood, Dubai World Trade Center.

19-21 February (Wednesday-Friday): International Dialogue of Civilizations & Tolerance Conference, Abu Dhabi Energy Centre.

24-25 February (Monday-Tuesday): World Passenger Experience Forum, Dubai.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai.

28-29 February (Friday-Saturday): Investopia 2024, the St. Regis, Abu Dhabi.

28 February-29 March (Friday-Saturday): Ramadan.

Signposted to happen sometime in 1Q 2025:

The first eight fronds of the Palm Jebel Ali will be site-ready, allowing for the commencement of villa infrastructure and civil works.

MARCH

18-19 March (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

31 March-2 April (Monday-Wednesday): Eid Al Fitr, national holiday.

APRIL

1 April (Tuesday): New ADGM employment regulations come into effect.

1 April (Tuesday): New personal status law comes into effect.

6-11 April (Sunday-Friday): Geo-Spatial Week, Dubai.

7-10 April (Monday-Thursday) : EFG Hermes One on One conference, Dubai.

7-9 April (Monday-Wednesday): AIM Investment Summit, Abu Dhabi National Exhibition Center

7-9 April (Monday-Wednesday): Middle East Energy, Dubai World Trade Center.

14-16 April (Monday-Wednesday): Dubai Woodshow’s 21st Edition, Dubai World Trade Center

14-16 April (Monday-Wednesday): IPS congress, Dubai World Trade Center.

16-18 April (Wednesday-Friday): World Future Energy Summit,Abu Dhabi National Exhibition, Abu Dhabi.

21-25 April (Monday-Friday): The Dubai AI Week, Museum of the Future and Area 2071, Emirates Towers, Dubai.

25 April-11 May (Friday-Sunday): Dubai Esports and Games Festival, Dubai World Trade Center.

28 April-1 May (Monday-Thursday): The Arabian Travel Market, Dubai World Trade Center

Signposted to happen sometime in April:

Abu Dhabi Autonomous Racing League, Yas Marina Circuit in Abu Dhabi

MAY

6-7 May (Tuesday-Wednesday): Global Ports Forum, Dubai.

6-7 May (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

13-16 May (Tuesday-Friday): International Union for Health Promotion and Education Conference, Abu Dhabi.

13-15 May (Tuesday-Thursday): Cabsat Middle East and Satellite Middle East, Dubai World Trade Center.

15 May (Thursday): The Economy Middle East Summit, ADGM, Abu Dhabi.

16-18 May (Friday-Sunday): GISEC, Dubai World Trade Center.

19-22 May (Monday-Thursday): Make it in the Emirates, Adnec, Abu Dhabi.

20-22 May (Tuesday-Thursday): Seamless Middle East 2025, Dubai World Trade Center.

26-28 May (Monday-Wednesday): Arab Media Summit, World Trade Center, Dubai.

30 May (Friday): Arafat Day.

31 May-2 June (Saturday-Monday): Eid Al Adha.

Signposted to happen sometime in May:

Asean and GCC summit, Malaysia.

JUNE

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

24-25 June (Tuesday-Wednesday): Middle East Rail, Dubai World Trade Center.

27 June (Friday): Islamic New Year.

Signposted to happen sometime in 2H 2025:

Closing of XRG's acquisition of Covestro

JULY

29-30 July (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

SEPTEMBER

8-10 September (Monday-Wednesday): DigiHealth exhibition, World Trade Center, Dubai.

16-17 September (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

24-25 September (Wednesday-Thursday): Mohammed Bin Rashid Leadership Forum, Mohammed Bin Rashid Center for Leadership Development, Dubai.

OCTOBER

3-16 October (Friday-Thursday): Dubai Home Festival.

9-15 October (Thursday-Wednesday): IUCN World Conservation Congress, Abu Dhabi.

27-29 October (Monday-Wednesday): Asia Pacific Cities Summit, Dubai Exhibition Center.

28-29 October (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

NOVEMBER

18-19 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, Dubai.

DECEMBER

1-3 December (Monday-Wednesday): Eid Al Etihad (UAE National Day).

1-5 December (Monday-Friday): The World Congress of Neurosurgery, Dubai World Trade Center.

9-10 December (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

Signposted to happen sometime in 2025:

The Middle East Electric Vehicle Show, Expo Center Sharjah.
e& will complete Adnoc’s private 5G network.
Executive Committee Meeting (EXCOM 2025) conference of the World Smart Sustainable Cities Organisation (WeGO)
The International Civil Aviation Organization’s Global Implementation Support Symposium, Abu Dhabi.
Universal Postal Congress 2025, Dubai.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.
ICOM General Conference 2025, Dubai

Signposted to happen sometime in 2026:

The UAE to host the Arab Competition Forum
Dubai to host the Arab Actuarial Conference
United Nations Water Conference 2026, UAE

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